Monday, June 9, 2008

3G iPhone Launches with Developer's Kit: Let the Competition Begin

The world tripped over one another to ooh and aah at the latest version of Apple's iPhone, a somewhat sleeker model with 3G wireless Internet access and a software development toolkit that enables applications to be built for the iPhone that can take advantage of all of it's "new hotness" interface features. Prominent among the new applications at launch is Microsoft Exchange, a shot across the bow to enterprise users equipped with Blackberries and feeling that, well, they're just not as hip as the next sales and busdev guy. Toss in promised interfaces to home appliances and Microsoft's home strategy takes a bit of hit as well.

Also prominent is the new USD 200 domestic price tag, presumably subsidized by AT&T in much the same manner as other mobile phones to promote mass sales and mass usage of AT&T services. Now people wanting to keep up with the tech-leader Joneses down the street can pile on and join the fun. Put these factors all together and you have a highly competitive platform (albeit one that still lacks a keyboard) that makes consumer and enterprise content accessible in mobile markets as never before. That's the good rah-rah news, in any event.

The not-so-good news is that the exclusive deal with AT&T puts pressure on other mobile carriers to come up with their own deals that can compete with AT&T at a price point that's much closer to attainable luxury for most folks. Supporting a plethora of platforms has hindered the ability of applications developers to create software that scales to markets and has drageed down enabling full Web access on 3G networks, hobbling the ability of U.S. carriers to prepare for this inevitable moment of challenge by Apple and AT&T. Instead of focusing intently on content, most mobile carriers have focused too much on the tech of the platform, instead of viewing mobile devices as just another blank screen that can be painted with content from any application.

However, these aggressive moves by Apple and AT&T may be more a preparation for emerging competition. Microsoft or Google or both will benefit from other mobile carriers and device makers trying to create more cost-effective alternatives to the iPhone now that the USD 200 price barrier has been breached. Microsoft is the more likely beneficiary in the short term, but with profitability becoming an issue, especially with the cost of 3G Web services pushing margins down, Google's Android cross-platform operating system is likely to emerge as the platform that allows more profits at lower price points for both mobile device manufacturers and carrier networks. As noted in TheStreet.com recently a preview version of an iPhone-like phone equipped with Andriod offered touch-screen operation, 3G Web access, software development interfaces for applications and many other features which are likely to come in close to iPhone functionality without the content and software licensing baggage that comes along from Apple.

There's no doubt that the iPhone will continue to be the Lexus of Web-enabled phones for a while, but there's also no doubt that the world has been waiting for the Toyota version to show up for a while. Especially in burgeoning markets like China and India, where Apple's licensing strategy is likely to be less appealing, Android-equipped phones that enable integrated Web access and language-independent hardware are more likely to be the global winners in mobile communications. So while the hoopla around the iPhone 3G launch looks hot for today, remember that in the fall we're likely to be talking about a different perspective on its future.

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ABOUT SHORE

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I focus my professional life at the intersection of content, technology and people, enabling organizations to find their most valuable positioning there. I speak often at conferences, have written the book "Content Nation" on social media (http://goo.gl/bKq6l) and am working on my second book, "The Second Web" (thesecondwebbook.com).

I sail, love to travel and to explore new places, natural wonders and cultures, do community volunteer work, read voraciouly and believe that every day is an opportunity to make the world a better place.

Biography:

John Blossom is a globally recognized media and enterprise content industry analyst, providing thought leadership to executives in search of new approaches to rapidly changing markets for publishing and technology products and services. Mr. Blossom founded Shore Communications Inc. in 1997, specializing in research and advisory services and strategic marketing consulting for publishers and content service providers in enterprise and media markets.

Mr. Blossom’s engagements have included strategic marketing consulting for major corporations and startups as well as speaking engagements at major conferences and advisory services for senior industry executives. Mr. Blossom is the author of the book "Content Nation: Surviving and Thriving as Social Media Changes Our Work, Our Lives and Our Future," published by John Wiley & Sons, Inc. in January 2009, and speaks frequently at industry and corporate events on publishing in enterprise and media markets.

Mr. Blossom's career spans more than twenty years of marketing, research, product management and development in advanced information and media venues, including the marketing and development of real-time and Web-oriented financial information services at global financial publishers and financial services companies (Citicorp, Quotron and for Reuters Holdings PLC), as well as earlier experience in broadcast media.

Mr. Blossom served as a Vice President and Lead Analyst at Outsell, Inc., where he provided research and analysis coverage of content technologies and financial and corporate information markets for major corporate clients, and developed successful online ecommerce services for research reports.

For his excellence in qualiitative research, Mr. Blossom was recognized with the Vendor of the Year award by Standard & Poor's in 2001. Mr. Blossom's ContentBlogger weblog won the Software and Information Industry Association 2007 CODiE award for Best Media Blog. Mr. Blossom has traveled to and is familiar with both European and Asian markets for content as well as North American markets..

Mr. Blossom has been interviewed frequently by the business press and has been quoted in many major news and trade publications and media outlets, including: